Inflation expectations ease in Türkiye as Central Bank survey shows decline

According to the survey, market participants now anticipate a 43.1 percent inflation rate by December, down from the previous month's forecast of 43.3 percent.

Additionally, expectations for inflation over the next 12 months have also eased, falling from 28.1 percent to 27.5 percent. These figures align with the recent trend of declining inflation rates in the country.

The Turkish Statistical Institute (TurkStat) reported that the annual inflation rate dropped from 61.78 percent in July to 51.97 percent in August. Monthly inflation increased by 2.47 percent during the same period.

The Central Bank's survey also includes forecasts for other economic indicators. Participants have lowered their expectations for the current account deficit at the end of 2024 from $25.48 billion to $22.17 billion. Türkiye's current account balance recorded a surplus of $566 million in July, compared to $330 million in June.

Regarding economic growth, the survey participants have revised their forecasts downward. They now expect the Turkish economy to grow by 3.2 percent in 2024, down from the previous estimate of 3.4 percent. For 2025, the growth projection has been reduced from 3.5 percent to 3.4 percent.

These revisions align with the government's updated medium-term program, which has also lowered its GDP growth targets for both 2024 and 2025. The government now aims for 3.5 percent growth in 2024 and 4 percent in 2025. (ILKHA)